right? you're saying the recovery is-- you're basically, you're saying that you created the recovery. i'm saying that you've done nothing to get that participation rate up, back where it should be. >> no, i-- and there, i think, you're respectfully, i think you're a little bit confused. because as i say, the labor force participation rate was fully expected that over a four to five year period would fall. it has fallen, the labor force participation rate, for example, of prime age males, has fallen under every single president since franklin roosevelt. that's because, after we get through a period of slow population growth and baby boom, and we've had an aging population for some time. so, i think the fact that there is a group of peeple who dropped out of the labor force and have not come back is the weakest part in the job market. but the economy's added some

3 1/2 million, 4 million jobs and that is a recovery. it's not as fast as the reagan recovery. it's faster than the push recovery and it's factored somewhere in there. >> i never thought i'd hear you say-- >> a starting point clearly was-- >> all right, i take your point. it's good stuff. i never thought i'd hear you say it's not as fast as the reagan recovery, but you just said it. >> i say that every time whenever you bring it up, that's one of the great recoveries in u.s. history. it helps when you can go straight back and doing what you were doing. stuart: if only we had done in 2009 what ronald reagan did in 1982, but i'm out of time. you know i'm out of time, now that. >> which is set the highest rate at 50%? >> no. >> that's what it was. stuart: it stimulates the private sector, not all government all the time. that's the story. aw austan, i'm sorry, i really am

out of time. thank you, sir. more "varney & company" in a moment.

>> a strong earthquake hit the coast of japan in the same region where the fukushima plant was devastated last year. no tsunami waves this time around. 7.3 magnitude quake and shook buildings more than 200 miles away in tokoyo, a tsunami warning has now been called off. we've been reporting this for months here on "varney & company." gun sales, they are absolutely booming. and now, smith & wesson, the gun people, they made a profit and they raised their outlook and the stock is going to be up come that opening bell. charles,you're buying gun stocks? >> i've got to it will you, i wanted to feature this on making money for charles segment and sandra smith was covering it and i didn't have a chance to hear what they had to say. hopefully-- >> you would have said this stock is going up if you had a chance yesterday. >> from ruger, which is a rival

and actually had a much better run in this stock and a 17% short position, so these may be under some pressure and not a lot of room, technical resistance, and there's room for this to be-- >> based and done well. not as well as the rival. from a valuation point of view it's enticing, wall street is worried and what happened is the guys every filled. they see the man and see the fbi data and in the past produced a lot of guns and the demand went away and one of the reasons the stocks aren't higher. stuart: the demand hasn't gone away yet. charles: not yet. stuart: investors are character out on apple losing market share in china and samsung stepping in and fox and friends host as resident tech guru, here is the question, clayton, has apple lost its cool? and also, netflix in trouble with the sec over facebook status, what? find out why after this break.

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>> all right. we're just a few seconds from the opening bell. i'll repeat the news of the day. 7.7% unemployment. that's the rate for the month of november. 146,000 jobs created overall.

look within the numbers, 350,000 people dropped out work force in one month alone. that accounts for the drop in the unemployment rate. now, that news was out precisely one hour ago. when that news was released, stock futures took a flip up. we should be opening this day with a gain for the dow industrials of around 90-- i'm sorry, about 60, 70 points, we'll see when that opening bell rings and the stocks are trading, but that's the news back drop of the day. which is a lower unemployment rate, a shrinking work force. all right, trading is about to begin and as we say, the futures are pointing higher this morning and by the way, gold is pointing lower. we'll check that in just a moment. the owning trend on wall street is to the upside. we're moving higher from there. and it should be up, i think, now, 70 or 80 points to get going. now, we've been following apple on the way down and it's bounced back yesterday, a little bounce.

look at the share price now, 552. we bottomed out around 505 on that stock, down from 705 back in september. remember when we reported over the summer that netflix saw a billion hours of viewing in june? big deal. the stock went up, but now, the sec, that would be the securities and exchange commission, says netflix violated a disclosure rule because it didn't release the information in a formal filing, oh, no, did it on facebook instead. and a staffers update. not supposed to do that. nicole, netflix stock is where? >> the stock is lower after hours yesterday and now, look what's going on? up arrow for netflix and showing some resiliency. the whole idea is that they posted on facebook about how many listeners they had, the monthly viewers, i mean, 1 billion monthly viewers, hours, boy, am i screwing that up. let me get it right.

netflix monthly viewing exceeded 1 billion hours for the first time ever in june. that's what hastings put on the facebook page and of course, regulators don't like that. they said that should have been full disclosure. >> i'll put it to you, nicole, investors don't care. that stock is up even though the sec objects to this. they like it at 88 bucks a share and somebody is buying at that number. and charles payne has a comment? >> and i told my subscribers to buy the stock, too. >> did you. >> i love the way it's acting, i was hoping it would be down a lot because that's relevant to the grand scheme. >> what stands out to me, is a billion hours before viewing of netflix in one month. >> that's the new paradigm. and the new deal with disney, 300 million. clayton, you're with us. >> a huge deal, first run movies and disney avengers and plus, they bought "star wars" and now, disney on "star wars," cartoons, you name it on netflix and now

what we're going to do, we're going to seal the content. and hold it on right there. charles: i got excited, i had to jump in. feel free. this could be the start of a troubling trend, ibm is keaninging the way it contributes to its employees, 401(k) accounts. and the match will take place in a one time payment, december 31st, so, if you leave the company before december 15th, that's the date. you don't get any of that company match for that year. and big money saver for ibm could be a big loss for some employees who leave early. charles, this could set a trend. >> it should set a trend, i think it's a brilliant move on their part. listen, unfriended corporate pension liabilities, something we talk about on the-- it's not the debt, but it's something, just like in the private-- in the public sector. >> you look at this, you look at this always from the company's

point of view, don't you? >> i know, i know. what about the employee who kits on december 1st and misses out for the preceding 11 months? >> the employees have the upper hand. they can quit and find here job. >> get out of here. >> and for them to quit, this is a part of the equation. stay with the company if you believe in it. say quit on january, but et e the-- >> i think you're exaggerating the degree of freedom that people in their 30's and 40's have. do you think they can up and quit at ibm. charles: if they get a better offer. it's easier for a company to fire than-- >> i think things to come. >> the stock market's done nothing for 12 years, and then a lot of profits have been made. stuart: let's get to apple and clayton morris, and it's taken a big drop. 705 down to 505. and some say it's internal markets selling ahead of the big

tax increase on stock profits next year and there's also the report out of china and apple is only 6th in the smart phone market over there. here is the question, is the iphone, is apple still cool? clayton morris though is cool. >> oh, yeah. >> i believe you do. >> and is it still cool? go. >> i think when you walk into the apple store it's hard to answer as a metric. when you see people waiting to get the hands on an ipad mini. but the past week, the number one requested item amongst teens this holiday season is an ipad, and you still have no other player in the mp3 space and apple is coming out with great new ipods. no one else, no one else makes mp3 players with kids. >> i'm jumping in, why is apple, the iphone, number 6 in the fastest growing and probably the biggest market in the world. that will be china, why? >> well, i think that apple isn't it rating as fast, we're

seeing samsung phones coming out every week, like a new one, every week. every size, shape and color, so you've got a lot of competition in the space, apple wasn't doing anything in china a few short years ago and now they're going to the iphone in that debate. and falling-- >> fell two notches. you've got competition now from samsung and the mobile space and they're the gold standard when it comes to computing. i think it's great because it forces apple to make interesting decisions and become more competitive and i think that once a year for a phone. i think we may start to see apple shift in the idea of coming out with an iphone every week. >> and forces apple to shake up the status quo. do you think with the cash they're sitting on might be smarter to make acquisitions out there and broadening the face of offerin

offerings? >> i think one thing you're seeing a competition with google and need to start hiring talent to keep up with google's innovation with cloud services, not necessarily in the hardware space. no one makes better hardware than apple. they don't need that engineering, they need software engineering to keep up with google to make cloud searching work. >> apple is going to spend 100 million dollars bringing some mac production to the united states. they're going to build these things in america and they've not done that before. what do you make of it. >> they haven't done it in 20 years and i know apple has been wanting to do this. it's been a thorn in the side of apple. stuart: it's for political reasons? >> it's for political reasons, sure, and the thorn in the side is tim cook to deal with worker conditions. >> no, no, no. >> sure. >> you can't tell me, the chief executive says i'm tired of getting on that plane and going to china. >> and i don't know that he cares about getting on the plane. he's tired of the negative pr. >> right.

>> and now to the real point. and it's a drop in the bucket. this is all simply to fight the pr war. by the way he said something interesting, i'm not obligated to create a certainly kind of job, i'm obligated to create jobs and hey, you guys want to me bring the, 4 and $5 an hour jobs, if that'll keep the press off my back, i'll do it. if this is the job we want i'll create them and a hundred million. >> it's a drop in the bucket and we have to worry about regulation in california and they built the plant in california and what they're going to have to deel with in california. >> formerly golden state of california. >> right. >> bottom line, apple is still cool. when you see other teams only care i go an iphone, it's hard to argue with that. i don't know cool as well as the teens, but when they're carrying iphones with the case and free iphone 4 s's, it's hard to compete with na. >> a drop in the stock price is related to selling and not related to--

>> i think a big factor to be honest with you, wall street doesn't have to face tim cook that he had. >> roll this video in the new year, apple's most profitable quarter ever. roll this tape back, make fun of me later. stuart: we'll never make fun of you. charles: we want to know about the next year. >> next year will be interesting, yeah. stuart: thanks a lot. the crisis in egypt continues. thousands took to the streets of cairo after friday prayers. the presidential palace with president morsi inside has been surrounded by tanks. yesterday, morsi refused to call off a vote on that new constitution. he will not back down. and members of his cabinet, and people are dying in the streets. egypt in turmoil, the worst in decades and its economy flat-out at a stand still. time is money, here is what else we talk to you this friday morning, the u.s. is sitting on big reserves of natural gas, but the environmentalists want to restrict access to it they don't like fracking, say it's bad for

the water supply. we're going to talk to a man whose company cleans that water. a very rare diamond will be on the set and i'll be able to touch t you'll find out how much this rare red diamond costs. new at 10, michigan right to work pushes through. hundreds of pro union workers rush the state capitol. the top of the hour, we'll have that. now, i have the seven early movers including special dividends, charles payne used do this and he's going to offer a commentary how good i am at it. publisher mcgraw-hill, aboard that special dividend. payable. december 27th. and medical imaging company and logic, down figure time, four bucks. sirius xm radio, a special dividend 5 cents a share, get paid this year. stock is up. yes, it's unchanged. and drug maker hiring a sales

force for cholesterol reducing fish oil pill, and investors thought the company would have a partner by the now still the stock sup. better news for biodell, the fda granted tax credits for the new hypoglycemia drug and that stock sup. einstein's bagel, a special dividend $4 a share from a bagel company. they pay you december the 27th. the market likes it. home builder dr horton, pay of 15 cent dividend, special. december 23rd, you get the cash. the market likes it, up it goes. that's the end of seven early movers, did i do okay. charles: i will give you b-plus. stuart: what do you mean a b-plus. charles: i like to do winners. fair and balanced and you throw some losers in tlichlt thank you charles for your contribution. united states is the most charitable on this planet and given away by private citizens and now that's people are rushing to give before the end of the year.

why? they fear that taxes will go up on charitable, well, the deduction will be limited next year on the deduction, i can get it out. the numbers are next. ♪ winston churchill and lead this, ladies and gentlemen, read this. good stuff. [ male announcer ] how do you trade? with scottrader streaming quotes, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your owtrading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes.

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the policies that are building an economy that works for the middle class as we dig our way out of the deep hole caused by the severe recession. okay, keep going. we want these policies, that's from the white house. tax increases coming next year. we've got two avoidance measures in the news, item one. 200 companies or more will pay dividends this year and that avoids the higher dividend tax next year. two, charities are seeing big increases in contributions now in case the deductions is limited next year. and joining us from the research group, we haven't seen greg since the election. >> i think once, you were out that day, but great to see you stuart. how have you been? >> i'm recovering from the election. >> glad to hear it. what i'm seeing with the dividends, charitable contributions speeding up. people are trying to avoid the tax increases they know are

going to hit them next year, the rich avoiding the tax on the rich policy, isn't it? >> well, who can blame them, right? this is a classic example of unintended consequences, when you start talking about raising taxes, people take action to reduce their liability. that's human nature, that's common sense. on this, on the stories you cite, stuart. two quick comments, number one, you can be pretty certain, dividends and capital gains will be taxed higher because of that 3.8 sur tax because of obamacare, that you can count on. second story, charitable contributions that's not ascertain as the 3.8% sur tax. >> i don't think we're going to see any restriction on the mortgage interest deduction. i don't predict that's going to happen. only 27% of people claim the mortgage interest deduction is a relatively small number. don't think it's going to happen.

>> i don't rule out some kind of restriction on second homes or, you know, vacation homes, something like that. but any direct assault on that and i would add, any direct assault on the muni bond deduction, to me, is very unlikely. stuart: yeah, look, everybody here and i'm sure our viewers, they're fiscal cliff cliff fatigued to death. it's a real turnoff and we know it, but i want to address the issue in big picture terms with you because you're big picture thinker. i think at the end of the day we will have higher taxes on wealthy people, promises to cut spending somewhere down the road and don't worry about the debt, ignore it it. i think that's the outline of a big picture deal. what do you say? >> i sort of agree, stuart. there will be higher taxes. i do think the republicans will extract a couple of entitle reformat. a new way to calculate the cost of living adjustment and social security, maybe a higher payment by beneficiaries who are

wealthier in medicare and finally the last point you make is the really intriguing one, that's the debt ceiling. and my hunch is the republicans will cave on taxes and they'll come back to fight again later in the winter on the debt ceiling and they could really extract major spending cuts by late winter. >> so you don't think the president will get the blank check that he wants, no debt ceiling? he wants no debt ceiling, you don't think he'll get it? >> it's never going to may, it's too ambitious he's not going to try to do it by executive authority. so there's another crisis, we'll be talking about this all during january and february and the next crisis when the debt ceiling expires in late february and that's where the republicans will get a lot. stuart: all right, greg we appreciate you being with us, thank you. >> you bet. stuart: time for the gold report. 9:50 eastern. where are we, back to 1700 an ounce, i thought we were down, but we've bounced back, 1703. take a look please at these videos.

what are these people looking for in elephant dung? would you pay $50-- you won't believe this, they're making coffee out of this next. ♪

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>> all right. elephant dung coffee. in thailand they feed coffee to elephants and when they pass the beans they use them to make coffee and something about the reaction in the the elephant's stomach makes it taste better, it sells for $50 a cup. and i want to bring nicole into this. she's our coffee expert. straight forward company you haven't tried the starbucks $7 per cup coffee. if you if given an opportunity try the elephant dung $50 per cup coffee. >> i am an adventurous girl. this is tricky, the black eye coffee. i don't know, bring it over, stuart i'll have to decide. this is a little over the top. stuart: yes, you could say that, i think. i believe that.

charles payne is still here and i want to ask him the question. would you pay $50. charles: i wouldn't pay for it. if someone had it i would probably take a sip, i'm not in the same room it's brewing. stuart: i would drink it, i wouldn't buy it, but i would drink it, would you. >> that's the whole thing, i don't want to pay for it, you didn't ask me that question. i don't want to pay for it. will i drink it? i'm really just not sure, but it's about the stomach acid that takes out the bitterness and makes it more flavorful. stuart: you buy it for me i'll drink it. thanks very much indeed. nicole, would you think of all states, michigan was pro union. think again. a new measure that's headed to the governor's desk makes michigan home of the auto workers union, a right to work state. and big news, big protests and it will be new at 10 and it's next. with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies...

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stuart: new at 10:00 a protest at the state house in michigan after lawmakers pass a right to work bill. a major move against unions in what was a very pro union state. what is going on in michigan? we are on that one. the big story today, 350,000 people left the work force in november, just give up. that is what contributed heavily

to the unemployment rate dropping to 7.7%. what should be considered a sign of things to come, ibm dramatically changes the way it matches employee contributions to 401(k) pension plans. and how they will pay a lump sum on december 31st. if you quit before december 15th you get no match for that calendar year. saves ibm millions. check the big board. where are we this jobs friday? 1/2 hour into the session we are up 30 to points the dow above 13,100. it is job friday. here is an appropriate company. monica crowley is with us. keep the organ, chief executive officer scott page is here. nicole petallides on the floor of the new york stock exchange. let's go with apple. they opened higher today. now they have moved fraction down. tell us what apple is in the news, tell me where it is. nicole: apple is to the

downside. we have talked about it so much all week long, the 50 day moving average is below the 200 day moving average. it was somewhat inevitable. it happened today so now you look at key levels. below areas where people are looking at buying was 518 at yesterday's's low or 505. on the other side, the upside, the resistance here is going to be around 601. stuart: if you get to 601 you expect a wave selling and 518 or 505 you waver coin. that is 545 or 550, right in the middle, that is where it is. i think i have got it. thank you very much. let's get to the big story of the day, the november jobs report, 350,000 people, this is the key number, left the work force last month. the labour participation rate also fell. the unemployment rate came down. at number, that is not a good

smell and. >> that is an astonishing number but we have seen numbers of on these lines for months and months and months. the employment picture in this country is not getting better. it is stabilized and hit a plateau but added this will position. that 350,000 people who left the work force, this is not america. this is not what we should be experiencing here. we tend to look at the unemployment rate and look at these unemployment numbers but remember that is closely tied to the slow gdp growth rate. we are at 2% or 2.2% gdp growth. that is nothing compared to what we saw during the reagan recovery. stuart: i got austan goolsbee to admit that this morning on this program. austan goolsbee basically helped write the president's economic policy. he has a vested interest in saying this recovery is doing okay. i will throw one more number at you. if we have the same labor force participation rate today as we had in december of 2007 the

unemployment rate will be 11%. >> in fact when the president came in in january of 2009 if we had the same labor participation rate it would be 10.7%. stuart: so the whole reason for the decline in the unemployment rate is people dropping out of the work force. do you have anything to add to this, chief executive officer scott page? >> we need to look at why people of dropping out and given up but i will make a prediction that we will see an increase in jobs. stuart: rebound from sandy. >> and holidays the economy is getting stronger branded is going to get stronger and jobs will increase. stuart: you think the economy is getting stronger. what is the evidence for that? >> it hit a plateau and stopped. it can only go up. i do not believe it will down. [talking over each other] stuart: what do you see in the future? 3.5% or 4%? >> a small increase will happen in the future. sandra: based on what? you have obamacare and a potential recession --

stuart: taxes going up. if you think -- >> will force change and until this country needs serious change -- stuart: when you're talking economic growth you are trying to tell me we have grown at 2.5% and that is it and that is why we have got. you are saying we will go to 3.5%? >> i do believe there will be an increase and on the twenty-first we will see an increase whether it has to do with seasonal growth or hurricane sandy we will see an increase which is an improvement. stuart: every time you speak out when the heart. i want to move to the ibm story. it is changing its 401 k organizing, how it plans it. its match will now be paid to employees, a onetime payment december 31st. that means if you leave the company before december 15th, that is the date, leave the force of -- the server fifteenth you don't get any of the company match that you actually earned for that year. big deal for ibm. a save a lot but bad news for

employees. you are chief executive officer. what do you say? >> i say brilliance. i think companies are forced to pay more for benefits and provide employee benefits. it should help keep employee retention to look at that benefit. it is a benefit, not an entitlement. they should stay the entire year. part of what the company will give them their match. stuart: so it is company retention. you are not going to leave on december 14th. >> co. retention. stuart: that is a good point. you redeem yourself somewhat. i want you to take a look at this time and please. clearly worth a whole ton of money. it will be here in the studio with me shortly. the good people from christie's are going to join us at 10:45 and find out how much that rock is likely to sell for. a very rare diamond and it is red. we have a gunmaker they're raised its outlook. they will sell even more guns.

where's the stock? nicole: raising forecasts. you see a down arrow here. it hit a 52 week high. we know the gunmaker has been doing well. demand has been exceptionally high like they have never seen before but it has pulled back are of its earlier high down 3.5% but a new high of $11.20. stuart: did get open higher? it was open significantly higher and now it dropped down again. that could be some greater profittaking in advance of the big increase in profit taxes coming next year. nicole: it could be because it was at 1125 and it was a 52 week high. stuart: thanks, appreciate it. the dow was up 46. let's get to another big new at 10:00 story, big protest by union members at the michigan state capitol building yesterday. republicans passed a measure which could make michigan a right to work state. unions furious. the last month people spoke,

they voted against putting union rights in the state constitution. michigan a right to work state? you kidding me? >> this on the heels of what happened in wisconsin. wisconsin was the first place of the progressive movement. have vast anti-union legislation passed and sustained through a recall vote was released running. i think we are starting to see the beginning of a trend. when you look at these right to work states especially across the south, they are experiencing much lower unemployment levels, they are experiencing a far greater economic growth pace, the midwest states and union states. stuart: indiana became a right to work state last year or the year before. they became a right to work state, they pooled in thousands of new jobs, michigan has not. chief executive officer. what do you say? >> it will help spur jobs as well and union members if they want to benefit from what the union has to offer they have to

pay dues. you can't get the benefits of something and not pay for it. stuart: right to work state makes membership in union voluntary. if you want to join you join and if you don't you don't. sandra: what scott walker did was remove the state as the deuce collector so the union because so many union members don't want to pay those dues because of those dues goes straight to democratic coffers and a lot of union folks are not voting democrat and so that was a brilliant move on scott walker's part. i don't know if it is the same situation. stuart: michigan is a right to work law and the government is likely to sign it. looks like they will be the 24th ridge to work state in the united states. fracking is a way to get natural gas from shale thousands of feet underground. it is very controversial. some worry it affects the water supply and the environment. joining us now is any gruber

from the environmental system, i am going to give you the chance to give a commercial here for your company. what you do if i am not mistaken is you clean the water which comes out of the ground after a capital to one operation takes place. that is what you do. is that correct? >> that is correct. stuart: this business is booming. >> business has been very good. we actually specialize in industrial waste water treatment. so we took an application that we use in the food industry and apply to oil and gas industry because both of them have one thing in common. stuart: environmentalists are concerned about fracking. if you inject this water and sand and chemicals the underground, you can pollute the water supply. you are telling us that you can get away from the adverse affects of fracking, clean the

water as it comes back out again. that is what you do. you can mitigate the adverse effects of fracking. that is what you are saying? >> when the water flows back we basically remove 100% of the pollutants in water. and we recycled water so that they can reuse the water as opposed to using aquifer water. that is the key concern of anybody, it is not about the clintons in the water but the fact that the current practice is to dispose of the water as it is garbage into disposal wells and that water will never see the light of day. stuart: i have got to ask about the price. can you give me a rough idea how much it costs to clean the water from one well for one year? can you tell me? >> not in those terms exactly. our costs is going to be lower

than the cost of the current practices of disposing of the water and replenishing the water with aquifer. our cost generally will be 80% or lower, 20% or 80% of the current cost, 40% lower or more than the current practices. stuart: i wanted dollar number. current practices cost how much? >> current practices in the texas area in the neighborhood of $2 -- [talking over each other] stuart: for what? >> $2 per barrel. a barrel is 42 gallons. it can be $8 for the same thing. we obviously are going to be comparative but we can deliver the water, clean water for lower-priced, it takes to dispose of it. stuart: that is a very interesting proposition. we appreciate you coming by. thank you, sir.

i will repeat the number, 350,000 people leave the workforce in november. the unemployment rate falls. the youth unemployment rate still extremely high. young people continue to support the president despite a very high unemployment rate. coming up next a young republican is going to explain why young people vote left.

stuart: the big story is the jobs report. here is the headline number, 146,000 new jobs created in the month of november. may be better than expected. apparently no impact from superstorm sandy. the unemployment rate went down 7.7%. here is the reason why. the labor force participation rate down to 63.6%, and 350,000 people passed the work force and gave up looking for work. that is the real story in the jobs report. that is why many -- why the rate came down. a lot of people flat out discouraged. the white house releasing a statement on the jobs report, same as always saying the economy is growing, policies are working. only a small game for stocks this morning. dow industrials, 51 points. back in a moment with a young republican. where's your gift? uh... whew.

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or click to learn more. [ male announcer ] if you can't afford your medication, astrazeneca may be able to help. stuart: the washington post one of the last holdouts in not charging readers for online content. it will start charging some time next year. this according to the wall street journal. the company lost $50 million in newspaper advertising the first nine months of the year. looks like they're going to charge. back to the jobs report, let's focus on the youth vote and young people. look at this number. 23% of people aged 16-19, no job but still come out in droves for president obama.

to running the company from chicago is charlie perk with turning point usa, an independent student organization. 60% of the youth vote went for president obama. i say they have an entitlement mentality. they expect a job. they expect a high-paying job. they expect a high-paying job that matches their intellectual college qualifications. a won't take anything else. they have an entitlement mentality. and you say? >> very much so i would have to agree. young people from the beginning of elementary school everybody gets a trophy nowadays. there is no failing in schools and young people are not taught the tenets of merit and hard work. even in college they get loans that the parents give their way through college and on their parents' health care plan until they're 26 and understand what it is like to have a job in a work environment and have to provide for themselves and think everything is free and everything will be for them a matter whattthe economic climate

is. stuart: we have been looking closely at this labour participation rate and the number of drop outs. we know for a fact that the largest contingent of dropouts is young people. older people are actually increasing their participation in the workforce. youngsters are the ones that are dropping out. i want to know if you think this is going to change and how it is going to change. >> the only way it could really change is if we reform policies that making young people less likely to work. look at obamacare. young people can stay on their parents's plan until 26. give them another reason to stay at home and not fine work. look at the minimum wage laws from the country. is impossible for employers to hire young people and minorities. the minimum wage law has lots of good intentions but the good intentions don't necessarily translate to good public policy. young people can't find internships or get resources they need to succeed in the job market. stuart: you are making a lot of sense but i ask you this.

to you think you could get elected to any office in the united states of america today if you said we're going to lower the minimum wage or abolish it and do away with saying your parent's health-care insurance into your 26 and do away with unemployment insurance and do away with the earned income tax credit. could you get elected? >> it is not always about what is electrolyte favorable but i will tell you this. a way not to get elected is talk about only social issues. we have a real fiscal conversation in this country and not do what pecan and murdoch didn't talk about free market ideals and morality of capitalism we will see people understand we're talking about social issues start to cloudy true issues in this country. i believe that if governor romney talk about fiscal issues with real solutions and not had the social issues cloud the tenets of the campaign would of been very different and it is not always allow corley favorable but we are $16 trillion in debt and need real reform or for our country goes bankrupt. >> i agree with you on the

dependency picture because the objective of the democrats over many decades certainly the current democratic party is to expand government as far as fast as possible, the object of of that is to expand dependency on government as fast as possible and the ultimate objective of that is to create permanent democrat voting majority. if they can get to the kids and lock them into dependency early then they have got them for life. >> absolutely. the college student loans. they're trying to make it easier and expansion and kids don't understand that their money has to come from somewhere. as one of my friends but i got my free obama money to go to school. it makes me sick because they don't understand it somebody has to pay for. kids overwhelmingly support free contraception but nothing in life is free. the insurance company has to pay for it or the taxpayer and it is been ingrained in them. unless we have true reform in schools and how parents are raising their kids we will see the dependency grow and grow when the entitlement culture become permanent like europe. of the last one. you are a young man surrounded

by people the same age. when you come out and talk like you are talking now what is the reaction? >> a lot of the marston's. they never heard it before especially from teachers across the country. they never heard the tenets of capitalism in our schools and that is what our group turningpoint usa is doing. i go to lecture halls and high school band is about talking about the morality of capitalism versus the morality of government dependency and i truly believe young people want to be free. young people want to make their decisions and because of that there is hope. stuart: if you ever come in your queue set on the set with us because we like what you have to say. good stuff indeed. thank you. you want to add anything to that? you are the ceo when you hired these youngsters. >> i agree. stuart: do you seeethat entitlement mentality in the work force, the young work force that is coming in? >> i see and that mentality, i don't agree with the president on his position on entitlement, people should use in title and

as a stopgap, as a safety net and this country uses it as a hammock. is a birthright to be able to be given something and i'm born in this country and shouldn't have to work and be given things and it goes to education. to educate the younger people and the population we need to get out and work for what you have. stuart: i am beginning to like you. washington politicians bicker over the fiscal cliff, very frustrating. at the end of the day we're going to look more like europe. my take on that is next.

charles: wall street doesn't have to face tim cook. >> ruled this video tape back in the new year. this will be apple's those profitable quarter ever. rolled this case back. make fun of me later. i am saying it. of the one that was clayton morris in the last hour making a bold prediction of apple. the stock has been getting back but right now it is down a bit more, $6 lower at 11:40.

let's check the overall market of 44 points putting the dow above 13,100. netflix shares up again. nicole: this is showing resiliency for netflix. this is a stock people thought would be to the downside based on what we heard. we heard they posted something on facebook, regulated, they are upset with them so we have regulators now warning netflix about exactly that, they can't just postings on facebook. they have to be disclosed properly. there are disclosure rules. the ceo is saying don't worry about it. we think this one will be all right, his positive commentary held sing-along. stuart: investors don't care. disclose something on facebook, who cares? put the stock of the. stuart: tempers flare in michigan have lawmakers pass right to work legislation. hundreds of pro union supporters protested at the state capital.

listen to this for a moment. [chanting] stuart: stay with us. 10:35. one of our union watchdog from michigan brings the latest on that big shift in what was formerly a pro union state. stuart: i think you just had it. i think you are fed up. i think you are getting angry. here is my take on fiscal cliff fatigue. i share your frustration. it is our job to present to you the financial news of the day. we are here to tell you about your money but for the last month we have had to report on the posturing and talking point known as the fiscal cliff. decisions about taxes and spending are extremely important

especially when we are adding $300 billion a day to our debt but the constant bickering of dueling politicians on both sides of the aisle, the endless kicking of the can, the brinkmanship as we approach that disaster is making all americans angry. i think you turned off and tuned out and i don't blame you. who can sit still and watch our country dragged into ruinous-and not be a little frustrated? as i said many times i came here from europe 40 years ago and instantly felt the warm embrace of a truly generous and free society and now i see america galloping down the european road. we have already reached european levels of debt and our leaders give as political pablum. we deserve better than this. the other night i left the fiscal cliff behind and took a walk through new york city. it was great. the lights, the christmas tree, rockefeller center, crowds of people with their children.

was such a switch. "varney and company" will not walk away from the fiscal cliff but we will bring you the real america, the responsible america, the way it is and the way it ought to stay. i hope you all have a wonderful american weekend.

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stuart: the big story of the day is the job report, let's bring in one of our favorite guests, scott sean hannity, you seen the report, york trading on the basis of the report. i don't think it is as good or as solid as it first appears when you look at 7.7% unemployment and you say what? >> we are starting to celebrate not just striking out, we grounded out -- we still didn't get a base hit. we had half a million people drop out of the work force. you saw the revision of october's number and the michigan sentiment survey. we are nowhere better off today thaa we were last month or the month before it even if you want to make us a better picture it will take forever to get out of our problems at this rate. stuart: nothing is moving. oil, gold, stocks, nothing is moving. why not? >> two words, fiscal cliff. we are absolutely frozen because we don't know what is going to happen come an end of the year

and i'm afraid. we started to hear chatter about the government might just think this embolden them. the economy can handle as going over the cliff which is absolutely crazy but that is what we are starting to talk about down here. here we go again. that is why nothing is moving. stuart: merry christmas in chicago, we do appreciate it. see you again soon. major blow to unions in one of the biggest union state in the country. protests at the state capitol in michigan after the state legislator passed right to work laws. the governor says he is going to sign it putting michigan on track to become a right to work state. the unions absolutely furious. listen to this. [chanting] stuart: when you heard it before and heard it again. vincent the new geo of the center for public policy is in michigan. let me get things real straight here. if you have a right to work

state, membership in the unionn becomes voluntary. that is what it means. right? >> almost. membership in the union is always volunttry but what right to work means his workers have the option to pay a union or not and still keep their job. they are stuck paying for something they probably don't like. stuart: in wisconsin what really delivered a blow to the unions was that the state would no longer collect union dues. what does the legislation in michigan say about state collection of union dues? municipal workers? >> for a teacher in michigan, a law that prohibits deuce check off but that is for teachers. what this would do and unlike wisconsin is the supplies to the private sector and the government sector unions and says not only that the state is not going to do the check off but workers can choose whether they want to pay the union period.

in the soon-to-be 26 forced unionism or non right to work state a union can actually get a worker fired for not paying them. stuart: why is michigan doing this? i am told it is because neighboring indiana became right to work and attracted a whole bunch of jobs and michigan is jealous so they want to fall in line. is that the reasoning? >> right to work has been kicked around in michigan for decades. when indiana went right to work michigan took a look at that and said right to work states have lower unemployment, bigger population growth, bigger wage growth and when you factor in cost of living they have higher wages. we have to do something to compete because our neighbor next door is doing right to work and they attract business and we want those businesses to stay here so indiana going right to work probably played a big part of lawmakers's decision to give workers freedom to choose. stuart: are we dead certain that the governor will sign it in michigan? >> the governor said he would

sign it at the beginning of his administration. said it wasn't on his agenda. last week he said was. yesterday at a press conference the senate majority leader and speaker of the house all said they are behind right to work, they are pro worker and they are giving that freedom to the workers in this great state. stuart: is there anything the unions can do about it? in wisconsin they have a recall vote. can they do anything similar in michigan? >> you will probably see this after the next few years. once the law is signed and enacted it will probably be on tuesday when that will happen but for the next two years lenience are going to try to get right to work on the ballot and fight it there. this issue is not going away and we will be talking about it probably -- until november of 2014. stuart: at the end of the day you think michigan becomes a right to work stay? yes or no? >> tuesday michigan is right to work. workers have the freedom to choose. stuart: he always a pleasure. thank you for joining us.

let's take a look at these, please look, another christie's auction putting rare diamonds up for sale. i'm told they could be worth millions. find out exactly how much and watch monica crowley where a valuable ring in a moment.

stuart: is a game but a very small game. the stock market this morning, we have this jobs report, looks

good at first look but not too great. down industrials up 19. let's look at the numbers. 146,000 jobs created in november. not bad but not that great. here is the real story. 350,000 people dropped out of the work force. that is why the unemployment rate went down to 7.7%. not a bad report at first glance, not good when you look deeper. now that apple down slightly again today but $8 earlier. this has become a traitor's stock, technicals suggested the state between 5 and the dollars to $600 a share. research in motion trying to get its biggest corporate customers to adopt its new blackberry 10. releasing hopes on the new device. almost $12 a share. diamonds next. and you realldon't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it findone, you get refunded the difference.

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stuart: this segment is called old money but i like to call it luxury. joining the company is an international head of jewelry for christie's. welcome back. we always love to see. >> i always love to be here. stuart: when you bring good stuff with you. >> call me anytime. this will happen. stuart: for step, can we show please this rare red diamond? let's go closer to this one here. that is the red diamond. can we focus a little more on that? don't see that well on the screen. how much? >> it is a tree carrots stone and we with a larger diamond which wwll give you a sense of

the rarity. a round stone, has two of the rest queues in the dime in the world, red and orange and it will make $1 million, $300,000 a carat. that is a lot of money but it is not very big. it is the rarity of the color. you don't get red diamonds in large sizes. stuart: not bad for your business. >> not all. it is all educational. stuart: $300,000 a carat for a rare red diamond. >> so glad i came to work today on fox business. look at what i get to wear. stuart: got to get this on camera really well so you conceive the size of this thing. we are focusing in. look at that, that is -- that is 50 carrots. >> in the 70s that was your skating rink. today it is a rectangular color, the best flawless diamond ring. stuart: flawless. that is as good as it gets.

$20 million, $50 million. >> i wish. for the auction because we are at christie's and we sell well we have the estimate at $7 million to $10 million. stuart: i give you incredible commercials. $7 million to $10 million seems low for a flawless -- got to be rare. >> the is the estimate and to going to make $200,000 a carat which is a great price, $10 million, but again, $300,000 a carat for the red, $200,000 a carat for that and different clients who prefer different diamonds. stuart: i don't know who's going to buy this obviously, but do you think that the buyer will wear >> absolutely. [talking over each other] >> as the only one on this panel let me say i would absolutely -- diamonds are girl's best friend. stuart: i don't want to talk the product down but 50 carrots -- >> when you have a girl next you wearing the dime and nothing is --

[talking over each other] >> let me explain something about women. diamond can never be too big. stuart: is that a sapphire? >> that is a sapphire diamond bracelet made by a famous american jeweler. is made in the 20s and probably one of his more important creation's because there ridge tools that represented hands, that is -- this is a very important tool. stuart: that historical background as value. >> absolutely. stuart: how much? 50% of the price? >> $50,000, is going to go on to make close to $200,000 monday. stuart: right here, that is a ring. that is an emerald ring. >> colombian emeralds, 8 carrots done in the center, carrots on each side and that will make about 5 and did thousand dollars. green emerald from columbia. stuart: can we see -- i intrigued by 50 carrots of the flawless. that is absolutely stunning.

>> the question i'm always asked our diamond investment? sometimes we sold jules, diamonds, object more than once at christie's and in 2005 we sold that very stone for $4,200,000. and on monday, december 10th stuart: make $7 million to $10 million. stuart: windier take 10% of the selling price? >> of the selling price is negotiated commission and that level is nothing. on the buyer's side the premium is 6 of his 10%. stuart: it is an auction so is competitive bidding. >> it is competitive bidding. stuart: do you have to be there on the spot? >> you can bid on the telephone, said the representative, leave a bit with the auctioneer and in this day of technology you can bid live from anywhere in the world on your computer in real time and as a screen next to the auctioneer that flashes a bid and i will know that bid coming from dubai, bahrain or beijing. stuart: when you are the guy

with the hammer. but how do you know that the buyer is a legitimate -- $10 million? >> cleared before the auction. to get a paddle you have to be credited by christie's. stuart: stuart varney can't just walk in. >> you would get a big title. do you mary. stuart: these segments are really fun and we really appreciate you coming are with such spectacular jewelry. we appreciate it. >> had to be here. stuart: thank you, even before president obama won a second term, then sales surging. the numbers on women and gun ownership. the dow is up 36. more on guns and women in a moment. from the best players in history

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stuart: a new gallup poll shows there is an increase in the number of women reporting household gun ownership, 43%. this is the highest ever recorded by gallup. what do you make of this? this surge in debt under review should by women? >> we're seeing a surge but the women, that is particularly interesting to me. it seems to indicate that women are feeling a lot more insecure about their financial position, may be about their personal situation and they feel they have a need and a desire to want

to protect themselves from external threat. stuart: the number of guns out there does add to the number of unfortunate incidents when you have guns in the house. >> statistics don't back that up. criminals are deterred. when you look at right to carry states and communities crime rate is lower because criminals are more deterred if you think you are carrying a weapon. stuart: when you have no problem with this? >> i think it is fantastic. i in a huge gun sponsor and support and i believe this is the beginning of a trend. you will see more of that not only for self-defense and some protection but a lot of people are worried about our government, worried about the fiscal situation, they see a lot of instability and they want to protect themselves. stuart: one more topic, the sec slapped netflix with a violation of for a facebook status. scott? netflix posts something on facebook instead of making a formal declaration. the sec doesn't like it.

all the problems of being a publicly traded company. you are private. >> wear private. i would never go public. as a privately held company we deal with regulation and reasonable regulation is needed in any financial services business but to go public and make a statement on facebook, the sec is standing there waiting when you are a public company for you to trip. they found this as a trip for him to make this statement on facebook and facebook is a public forum. stuart: when you don't want intrusion. >> i don't want intrusion. stuart: when you don't need to raise the capital to risk going public. >> we are private company and well funded and can't be purchased. life insurance policies for people who donated. we're seeing an increase from our business because of potential tax change that any time there is instability in the financial services market people need to look at their own -- stuart: when the average age of your client is 82. >> the average age is 82. anyone of the aged 75 to the their life insurance policies and potential asset and financial planners. stuart: when you are betting on early debt. >> we are betting on early debt.

[talking over each other] >> i have been doing it for 24 years and very proud of it because we help people retiring this economy. you can get cash of the opinion of the thought you could get cash out of the ford. stuart: played the organ music. the highlight reel is next.

stuart: here it is. the highlight reel. >> 350,000 people that left the workplace. this is not america. this is not what we should be experiencing. >> if you look at the revisions being negative, this is a mildly positive report. stuart: in other words, unemployment has come down because people have dropped out. that is it. >> i think the economy is getting stronger. >> the unemployment picture is not getting any better. stuart: i was all about the jobs report and now this.

lowest jobless rate since 2008. everything is just fine and dandy. that is not accurate. >> technically, it is accurate. 7.7 rate is the lowest we have seen and quite a while. we know the reason it is there is because the labor participation rate is now under 64% which is at the lowest rate since early 1980s. people have just given up and dropped out of the workforce. stuart: scott page, you have another 22nd to try to tell me that this economy is growing just fine and dandy. >> i think people are getting burned out with all the fiscal cliff top. we cannot give up. we are america. stuart: they have given up. where do you. the group